Which of the Following Statements Is True About Information Systems

question 42

Multiple Choice

Which of the following statements is true about information systems?

• A) Most firms spend a huge portion of their information technology budgets on training and system security.
• B) New programs should be thoroughly tested across the range of a firm's ware after deployment.
• C) Purchase, configuration, and licensing costs for packaged software account for most information technology expenses of a firm.
• D) Firms need to vigilantly manage the moving target of computer security issues.
• E) Total cost of ownership of information systems is often a redundant concept while making technology investment decisions.

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Definitions:

Net Operating Income

An accounting term that refers to the profit realized from a business's operations, after subtracting operating expenses from revenue, excluding tax and interest.

Absorption Costing

This accounting technique combines all costs associated with manufacturing, such as materials directly used, labor directly applied, and all categories of overhead, fixed or variable, in determining a product’s cost.

Unit Product Cost

The total cost (both direct and indirect) assigned to a single unit of product.

Unit Product Cost

The total cost (both direct and indirect) associated with producing one unit of a product, used in pricing and profitability analysis.